Dividend Payment Delay for Wesfarmers’ Executive Shares Raises Timing Questions

Dividend Update and Payment Details

Wesfarmers Limited has issued an update to its dividend distribution for the financial period ending 30 June 2025. The company confirmed an ordinary dividend of AUD 1.11 per fully paid ordinary share, which is fully franked at the corporate tax rate of 30%. The payment date is set for 7 October 2025, with a record date of 3 September 2025 and an ex-dividend date of 2 September 2025.

This dividend reflects Wesfarmers’ ongoing commitment to delivering shareholder value through consistent income streams, supported by the company’s diversified industrial portfolio. The full franking credit attached to the dividend underscores the company’s strong tax position and profitability.

Multi-Currency Dividend Payments

In a notable feature, Wesfarmers offers shareholders the flexibility to receive their dividend payments in one of three currencies, Australian Dollars (AUD), New Zealand Dollars (NZD), or Pound Sterling (GBP). Shareholders can elect their preferred currency by nominating a bank account in the chosen currency. For those without a nominated valid bank account outside Australia, New Zealand, or the United Kingdom, dividends will be paid by AUD cheque mailed to their registered address.

The exchange rates applied for the non-primary currencies are AUD/GBP at 0.4875 and AUD/NZD at 1.1129, ensuring transparency in currency conversion. This multi-currency approach caters to Wesfarmers’ international shareholder base and mitigates currency risk for investors.

Dividend Reinvestment Plan and Executive Equity Considerations

Wesfarmers continues to offer a Dividend Reinvestment Plan (DRP) for this dividend, allowing shareholders to reinvest their dividends into additional shares without incurring brokerage fees. The DRP price will be calculated as the average daily volume weighted average price over a 15 trading day period from 8 to 26 September 2025, with no discount applied. However, no new shares will be issued under the DRP, indicating that reinvested dividends will be sourced from existing shares.

Importantly, the payment date for dividends relating to unquoted shares issued under the Key Executive Equity Performance Plan (KEEPP) will be deferred until those shares vest and are quoted. This introduces a timing nuance for executive shareholders, aligning dividend payments with performance and market listing milestones.

Implications for Shareholders

Shareholders wishing to change their dividend payment currency or participate in the DRP must provide instructions to the share registry by the record date. The company’s policy excludes DRP participation for holders with registered addresses outside Australia and New Zealand, reflecting regulatory and administrative considerations.

Overall, this dividend update signals Wesfarmers’ steady financial health and shareholder-friendly policies, while the multi-currency payment option and DRP flexibility enhance investor choice. The deferred dividend payment for KEEPP shares also highlights the company’s alignment of executive incentives with shareholder returns.